Question ID: 140
Regulation Reference: Guidelines on submission of information to NCAs (Preparatory phase)
Article: 35
Template: S.06.02
Status: Final
Date of submission: 13 Mar 2015
Question
S.06.02 - Participation flag (A16):
It is not clear whether for solo reporting (by undertakings belonging to a wider group), the participation flag is based on solo level undertaking’s satisfaction of participation criteria and is only subsequently reassessed in Group view or is always assessed in Group view (e.g. when an undertaking owns 5% of an company fully owned at Group level, should this company be flagged with N (not a participation) or with one of the other possibilities, as appropriate?)
EIOPA answer
For the reporting at individual level, the participation is identified based on an assessment from the perspective of the individual entity based on share ownership or pursuant to art 212(2). (please refer to GL 1 of the “Guidelines on treatment of related undertakings, including participations”, https://eiopa.europa.eu/Publications/Consultations/EIOPA_EIOPA-BoS-14-170-Final_Report_Treatment_Related_Ut.pdf).
For the reporting at group level, the same criteria applies to the identification of the participation but from a group perspective.
As clarified in the introduction of the “Guidelines on treatment of related undertakings, including participations” in most cases the identification of a participation will be the same both from the perspective of the participating undertaking as an individual entity and for group purposes since based on the same criteria. However, in certain situations there may be some differences.
For example, there may be the case where a number of entities within a group hold voting rights or capital in an undertaking that, when combined together, amount to 20% or more of the undertaking’s voting rights or capital. Consequently, such an undertaking would be identified as a participation at group level. However, if the holding of each individual entity within the group is lower than 20%, the undertaking would not be identified as a participation by any of those entities within the group at individual entity level.